The recent bullish pullback towards 0.7120 was considered for selling the NZD/USD pair. However, the resistance level failed to provide enough bearish pressure.

That's why, bullish pullback was pursued towards the price level of 0.7230 (the backside of the broken uptrend line) where a valid SELL entry can be offered if enough bearish rejection is expressed. S/L should be located above 0.7320.

The European Central Bank has decided to leave the key interest rate unchanged at 0.0%, which was in line with expectations. Together with the key interest rate, the deposit facility rate was left at -0.40%, the marginal lending facility was put on hold at 0.25% and the asset purchase target was left unchanged at €80 billion. Regarding the quantitative easing changes, the ECB said the QE will be kept at €80bn until April 2017, then it will continue at €60bn until the end of Dec 2017 or beyond if necessary. In conclusion, the QE program was extended just as anticipated, the bond-buying rate was lowered to €60bn.

Let's now take a look at the EUR/USD technical picture after the news release. The initial rally was quickly faded after the level of 1.0871 was hit and now the market got back to the trading range. Currently, the most important support is set at the level of 1.0687 and any violation of this level will likely result in further downslid towards the main support at the level of 1.0514.

The British industrial production data was released yesterday and it disappointed market participants. According to the Office for National Statistics, industrial output declined 1.3% in November, following September's drop of 0.4% and falling behind the 0.2% rise forecast. That was the largest decline since September 2012; the main reason behind this decrease was a temporary shutdown of the UK's largest oilfield. Moreover, manufacturing production decreased -0.9%, while the market participants expected the 0.2% increase. In conclusion, the series of downbeat data does not invalidate the better-than-expected performance since the Brexit vote. Besides, the GDP is still indicating an expansion of 2.2% in 2016 and 1.4% in 2017.

Let's now take a look at the GBP/USD technical picture on the 4H time frame. The market is clearly trading in a horizontal way between the technical support at the level of 1.2580 and technical resistance at the level of 1.2772. Only a clear breakout above the technical resistance opens the way to test the 61%Fibo at the level of 1.2903.

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.4905 in a high volume. According to the 30M time frame and using the market profile. I found yesterday's point of control at the price of 1.5048. I also found absorption volume and the price is trading above 21SMA. Be careful when selling EUR/NZD and watch for buying opporutnities. First upward target is set at the price of 1.5048.

On May 16, a bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of a significant bearish rejection was manifested during recent consolidations.

On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.

The market has violated the 61%Fibo at the level of 1.3227 and it is moving lower towards the next support at the level of 1.3129. The downside might be limited now, but the price must break out above the blue channel and then head towards the weekly pivot at the level of 1.3342. Please pay attention that the bullish divergence between the price and momentum oscillator supports the bullish view.

Support/Resistance:

1.3129 - 78%Fibo

1.3235 - Intraday Resistance

1.3342 - Weekly Pivot

1.3431 - WR1

1.3464 - Wave b High

Trading recommendations:

Day traders should open buy orders only if the level of 1.3235 is clearly violated. Otherwise, the sideways price action does not justify any trade for now.

Recently, gold has been moving upwards. The price tested the level of $1,180.02 in a high volume. According to the 30M time frame, I found that demand bars in the background closed in the middle and later on I found absorption of demand, which is a sign of weakness. Supply cluster at the price of $1,178.45 looks strong. So, watch for potential selling opportunities. The first downward target is set at the price of $1,171.35.

Note that the GBP/USD pair was trapped inside the depicted consolidation range above 1.2700 until a bearish breakout took place on October 6.

Daily persistence below 1.2700 confirmed the bearish Flag pattern. That is why, a bearish projection target would be located around 1.2020.

Recently, bullish recovery was manifested around 1.2080. That is why, a bullish pullback is being executed towards 1.2700-1.2750.

The current bullish pullback towards the price zone of 1.2700-1.2750 should be considered for a valid SELL entry. T/P levels should be located at 1.2300 and 1.2100 while S/L should be set as a daily closure above 1.2800.

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 where historical bottoms were previously set in July 2012 and June 2010. Hence, a long-term bearish target was projected towards 0.9450.

In March 2015, the EUR/USD bears challenged the monthly demand level around 1.0570, which had been previously reached in August 1997.

Later in April 2015, a strong bullish recovery was observed around the mentioned demand level. However, next monthly candlesticks (September, October, and November) reflected a strong bearish rejection around the area of 1.1400-1.1500.

Again in February 2016, the depicted price levels around 1.1400-1.1500 acted as a significant supply zone during the bullish pullback.

That is why, the recent bearish rejection was expected around the depicted supply levels (note the monthly candlesticks of May, August, and October 2016).

In the longer term, the level of 0.9450 will remain a projected bearish target when the current monthly candlestick comes to close below the depicted monthly demand level of 1.0570.

The long-term outlook for the EUR/USD pair remains bearish as the monthly chart illustrates. Bearish persistence below 1.0825 is needed to enhance this bearish scenario.

In September 2016, temporary bullish breakout above 1.1250 was expressed again, but evident bearish pressure was applied on the EUR/USD pair on September 16.

The market is awaiting the ECB interest rate decision later in the day, so the price is still trading inside a trading range between the levels of 121.86 and 123.17. It looks like the wave -iv- is unfolding now, possibly in the shape of a triangle. When this corrective structure is completed, one last wave to the upside will remain. The projected target for wave (v) (green) is at the level of 124.00. When the impulsive structure is completed, a larger time frame correction will be expected.

Support/Resistance:

124.00 - WR2

123.17 - Intraday Resistance

122.71 - WR1

121.85 - Intraday Support

120.62 - Weekly Pivot

119.40 - WS1

118.71 - Technical Support

Trading recommendations:

All day traders with open buy orders should prepare to take profits off the table at the current levels (or wait for the level of 124.00 to be hit) and wait for another trading setup to occur shortly.

USD/JPY is under pressure. The pair is consolidating on the downside after its downward breakout of a rising wedge pattern. The downside momentum is reinforced by its declining 20-period and 50-period moving averages, which play resistance roles and maintain the downside bias. The relative strength index is below its neutrality level at 50 and lacks upward momentum.

On Wednesday, US indices pushed sharply higher with the Dow and S&P 500 reaching all-time highs led by shares in the Automobiles & Components, Transportation and Telecommunication Services sectors. The Dow Jones Industrial Average rose 298 points (+1.6%) to 19,550, the S&P 500 added 29 points (+1.3%) to 2,241, and the Nasdaq Composite was up 61 points (+1.1%) to 5,394.

On the economic data front, MBA mortgage applications decreased 0.7% in the week ended on December 2 from a fall of 9.4% in the previous week. In Europe, Germany's industrial production rose 0.3% in October from -1.6% in the previous month (revised from -1.8%). Economists anticipated +0.8%. The UK industrial production decreased 1.3% in October from -0.4% in September vs +0.2% anticipated by the consensus.

As long as 113.85 holds on the upside, look for a further drop toward 112.55 and even 112.10 in extension.

Trading Recommendation: The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 112.55. A break below this target will move the pair further downwards to 112.10. The pivot point stands at 113.85. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.10 and the second one at 114.40.

USD/CHF is expected to trade with bearish bias as the key resistance stands at 1.0080. The pair remains weak below its nearest resistance at 1.0080, and is likely to post a new decline to 1.0020. A bearish cross has been identified between the 20-period and 50-period moving averages. Besides, the relative strength index is negative below its neutrality area at 50.

To sum up, as long as 1.0080 holds on the upside, expect a return to 1.0020 and 1.000 in extension.

GBP/JPY is expected to trade with bearish bias as the key resistance stands at 144.80. The pair is still consolidating within its intraday range pattern between 144.80 and 143. The relative strength index is mixed to bearish, calling for caution. Furthermore, the key resistance at 143.80 should limit any upside room. To sum up, as long as 143.80 is not surpassed, expect a return to 143 and 142.70 in extension.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 143.00. A break below this target will move the pair further downwards to 142.70. The pivot point stands at 144.80. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 145.60 and the second one at 146.70.

NZD/USD is expected to trade with a wider range as the bias remains bullish. The pair is trading on the upside within a bullish channel. Both the 20-period and 50-period moving averages are turning up, and should continue to push the prices higher. Furthermore, the relative strength index is bullish, and calls for further upside. Hence, as long as 0.7160 is not broken, likely advance to 0.7240 and 0.7260 in extension.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.7240 and the second one at 0.7260. In the alternative scenario, short positions are recommended with the first target at 0.7130 if the price moves below its pivot point. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7100. The pivot point lies at 0.7160.

The NZD/USD pair continued moving upwards from the level of 0.7126. Yesterday, the pair rose from the level of 0.7126 (daily support) to the top around 0.7222. Today, the first support level is seen at 0.7150 followed by 0.7126, while daily resistance is seen at 0.7280. According to the previous events, the NZD/USD pair is still moving between the levels of 0.7126 and 0.7280 in coming hours. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. From this point, The NZD/USD pair faces resistance at 0.7223, while strong resistance is seen at 0.7280. Furthermore, if the trend is able to break out through the first resistance level of 0.7223, we should see the pair climbing towards the new double top (0.7280). On the contrary, if a breakout takes place at the support level of 0.7126, then this scenario may become invalidated. Remember to place a stop loss; it should be set below the second support of 0.7110.

The USD/CHF pair faces resistance at 1.0124, while strong resistance is seen at 1.0160. Support is found at 1.0017 and 0.9973 levels. Today, the USD/CHF pair continues to move downwards from 1.0124 level. The pair could fall from 0.7342 level to the first support around 1.0062. Therefore, if the USD/CHF pair breaks support at 1.0062, this level will turn into resistance today. In the H4 time frame, the 1.0062 level is expected to act as minor resistance. Hence, we expect the USD/CHF pair to continue moving in the bearish trend from 1.0062 level towards the target at 1.0017. In the long term, if the pair succeeds in passing through 1.0017 level, the market will indicate the bearish opportunity below 1.0017 level in order to reach the second target at 0.9973. However, the 0.9973 area remains a significant support zone. Thus, the trend will probably rebound again from 0.9973 level as long as this level is not breached. Overall, we still prefer the bearish scenario below the area of 1.0124. According to the previous events, the USD/CHD pair is still moving between the levels of 1.0062 and 0.9973; for that we expect a range of 89 pips (1.0062 - 0.9973).

We are still focused towards the upside as long as 1.4737 protects the downside. That does not mean, we would like to see this support tested. Ideally we will see support at 1.4862 max 1.4828 protect the downside for a break above minor resistance at 1.5051 and more importantly above resistance at 1.5162 confirming the ending diagonal completed with the test of 1.4737 and a rally towards the origin of the ending diagonal at 1.5837 is developing.

Trading recommendation:

We are long EUR from 1.4750 with stop placed at break even. If you are not long EUR yet, then buy near 1.4862 or upon a break above 1.5051 and use the same stop at 1.4750.

We continue to look for wave c lower towards the 118.00 - 118.38 area to complete wave (iv) and set the stage for the next impulsive rally higher to 123.33 and likely closer to 124.49 to complete wave 3.

Short term, a break below support at 121.89 to trigger the expected decline in wave c of (iv) towards the 118.00 - 1118.38 area. Only an unexpected break above minor resistance at 122.94 will delay the expected decline for a move closer to 123.68 before wave (iii) is complete.

Trading recommendation:

We are short EUR from 122.04 with stop placed at 123.00. If you are not short EUR yet, then sell a break below support at 121.89 and use the same stop at 123.00.

The Dollar index got rejected at the resistance of the 38% Fibonacci retracement as we mentioned yesterday. Price has pulled back down towards its recent lows. Volatility is expected to rise today as the ECB meeting could provide valuable information that will mainly influence the major component of the Dollar index, the EUR/USD pair.

The Dollar index is below the Ichimoku cloud on the 4-hour chart. A bounce towards the 61.8% Fibonacci retracement is very possible if the recent low and support at 99.80 is not broken. Price could bounce today after the ECB President speaks with a target to reach the Ichimoku cloud for a backtest.

Black line - resistance

Green line - support

The Dollar index could have made a false breakout above resistance. Price is turning back downwards. This however could still be a back test and a corrective pull back so Dollar bulls could get more power for the next upward move. Bulls remain in control as long as price is above 96-96.50. Bears need to confirm the fake breakout and move towards 96 and break it. Otherwise the possibilities for a new high are real and more than that of a breakdown below 92.

Gold prices showed some strength yesterday as price managed to move out and above the short-term bearish channel. However, important resistance as shown by the Ichimoku cloud has still not been breached and therefore there is no trend reversal confirmation yet. On the other hand Silver prices have confirmed short-term trend reversal and this could be an indication that Gold will do too.

Blue lines - bearish channel

Gold price is testing cloud resistance on the 4-hour chart. Short-term resistance is at $1,190-$1,200. If Gold manages to break above it, then bulls will be in control of the short-term trend and we should expect at least a short-term bounce if not a full-scale trend reversal. Support is found at $1,160. If broken, we should expect Gold price to move towards $1,120.

The weekly candle has moved back inside the weekly Ichimoku cloud and this is a promising sign combined with buying interest when prices reach $1,170-60. That is why the last two weekly candles have long lower tails. It is important however to see a weekly move above last week's high at $1,198 in order to confirm the short-term reversal and the importance of the 61.8% Fibonacci retracement. I remain bullish Gold.The material has been provided by InstaForex Company - www.instaforex.com

When the European market opens, some economic data will be released such as Minimum Bid Rate and French Final Non-Farm Payrolls q/q. The US will also add some data to the economic calendar such as Natural Gas Storage and Unemployment Claims. So amid the reports, EUR/USD will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0808.

Strong Resistance:1.0802.

Original Resistance: 1.0791.

Inner Sell Area: 1.0780.

Target Inner Area: 1.0755.

Inner Buy Area: 1.0730.

Original Support: 1.0719.

Strong Support: 1.0708.

Breakout SELL Level: 1.0702.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

In Asia, Japan will release the Economy Watchers Sentiment, 30-y Bond Auction, Final GDP Price Index y/y, Bank Lending y/y, Final GDP q/q, and Current Account. On the dollar front, the US will also publish some economic news such as Natural Gas Storage and Unemployment Claims. So there is a probability the USD/JPY pair will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance 3: 114.29.

Resistance 2: 114.05.

Resistance 1: 113.80.

Support 1: 113.58.

Support 2: 113.35.

Support 3: 113.13.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

EUR/USD: There is still a "buy" signal on the EUR/USD pair. The EMA 11 is above the EMA 56, and the Williams' % Range period 20 is often around the overbought area. The bullish signal is supposed to continue as price would target the resistance lines at 1.0800, 1.0850, and 1.0900 today or tomorrow.

USD/CHF: The bearish signal on this pair remains valid (especially in the long term), though price has been consolidating since last week. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is not far from the oversold area. Price is supposed to continue dropping when momentum returns to the market.

GBP/USD: The GBP/USD pair has pulled back this week; but the pullback was not significant enough to override the bullish signal in the market, unless the accumulation territory at 1.2500 is broken to the downside. Price is expected to resume going upwards from here, reaching the distribution territories at 1.2650, 1.2700, and 1.2750.

USD/JPY: This market is still consolidating – and that is something that started last week. The weak hands are increasing their presence and as a result of that, the RSI period 14 has crossed the level 50 to the downside. However, the EMA 11 has not crossed the EMA 56 to the downside. Should the EMA 11 cross the EMA 56 to the downside, then the bias would turn bearish.

EUR/JPY: This currency trading instrument is still in a bullish mode, as price has gone upwards significantly this week (though it has started moving sideways since yesterday), allowing a strong Bullish Confirmation Pattern to hold in the market. Bulls might be able to target the supply zones at 122.50, 123.00, and 123.50 before the end of this week, especially when momentum returns to the market.

The index is holding its price action above the support zone of 99.98, where a strong demand area has been established. However, it seems that buyers are losing their momentum in the short term. Eventually, corrective moves could go deeper towards the 99.39 level. If USDX manages to break above 100.68, it can cling towards the 101.74 level.

H1 chart's resistance levels: 100.68 / 101.74

H1 chart's support levels: 99.98 / 99.39

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bullish candlestick; the resistance level is at 100.68, take profit is at 101.74 and stop loss is at 99.59.

The pair plunged once again during Wednesday's session, but the dynamic support offered by the 200 SMA on H1 chart remains intact across the board. If GBP/USD manages to rebound and test the next resistance around 1.2732, it would be expected to attempt a rally towards the 1.2840 level. MACD indicator is favoring the bullish scenario.

H1 chart's resistance levels: 1.2732 / 1.2840

H1 chart's support levels: 1.2625 / 1.2568

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.2732, take profit is at 1.2840 and stop loss is at 1.2625.

Gold price is testing the first key resistance level at 1,172.68 as the price is elevated by stochastic positivity, while the EMA50 continues to form negative pressure against the intraday trading. So the odds are in favor of the expected bearish bias for today. Therefore, we are waiting for a bearish retreat to 1,124.88. Let me remind you that breaching 1,172.68 followed by 1,188.00 will push the price to 1,211.31. Later, the price could extend to 1,249.94 after breaching the previous level. The expected trading range for today is between 1,145.00 he support and 1,180.00 resistance.

Silver price is trading with a slight bullish bias now. Price could resume the bullish trend for today as stochastics indicates the bullish momentum. The metal is expected to breach the 16.85 level to ease the mission of heading for 17.43 which represents the first main target. Therefore, the bullish scenario is valid for today unless we witness a clear break to trade below 16.56. The expected trading range for today is between 16.56 support and 17.20 resistance.